To The Moon

$Treasury Wine Estates Ltd(TWE.AU)$ has just delivered a 5.3% increase in full year's profit to AUD 263.2 million on Friday 19 August.   This is astounding despite substantial Chinese tariffs of 176% on Australian wines.

According to CEO Tim Ford,  "Wine is an affordable luxury"  even in economic downturn.   Treasury Wine would be mitigating higher costs by increasing prices across all product divisions in 2023.

Over the last 12 months,  Treasury Wine has increased sales outside of China by 106%.  Treasury Wines share price closed at AUD 13.42, up 8.5% over the week. 

Treasury Wine is one of the world's largest wine companies with the ambition of becoming the world's most admired premium wine company.   As a vertically integrated business,  Treasury Wine is focused on 3 principle activities  -  Grape Growing and Sourcing,  Winemaking and Brand led marketing.   

In Australia,  Treasury Wine have facilities in Winemaking and Packaging in South Australia,  New South Wales and Victoria.   It is also in Marlborough,  New Zealand,  Central Coast of California,  USA and in Margeaux,  Bordeaux and Gabbiano in France and  Tuscany in Italy. 

Treasury Wine employs more than 2600 employees,  has over 70 brands,  owns or leases more than 12,700 hectares of vineyards and in more than 70 countries .   The 3 key divisions are Penfolds,  Treasury Premium Brands and Treasury Americas. 

Treasury Wine has increasingly focused on building high end brands in its portfolio,  particularly in luxury and masstige wines.  Its revenue has risen to over 90% in 2022 from 43% in 2014.  Demand for high end wines are growing in Australia and the USA.  This will continue to drive earnings growth as profitability increases.   Wine consumption in Asia is also continuing to grow at high rates and is a high margin business especially on the luxury wines. 

$Treasury Wine Estates Ltd(TWE.AU)$ is a profitable company, has an excellent Balance Sheet and a great management team. $Treasury Wine Estates Ltd(TWE.AU)$ has also been paying regular and steady dividends.   The current dividend yield is 2.5% and with 100% franking,  is 3.5%.

$Treasury Wine Estates Ltd(TWE.AU)$ has built a solid reputation for its luxury wines especially the Penfolds range and this will continue to drive profits over long term.   

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